A Chicago-based investment adviser with Merrill Lynch was charged last week with stealing more than $1 million from two of his clients by funneling the money through a local chamber of commerce before taking the money for himself. Broker theft is one of the worst types of stockbroker misconduct.
Alec Rivera is facing one count of wire fraud for allegedly transferring $1 million from two client investment accounts without their knowledge between 2010 and 2013. Prosecutors claim Rivera then sent the money to accounts belonging to the Philippine American Chamber of Commerce of Greater Chicago, where he was treasurer. He then cut himself checks from the accounts.
In order to hide his fraud from his clients, Rivera had Merrill Lynch colleagues mail his clients’ statements directly to him, then sent doctored ones to his clients that did not reflect the transfers. He also told colleagues that the clients authorized the transfers.
The Merrill Lynch broker charged is no longer a licensed broker, as the Financial Industry Regulatory Authority (FINRA) banned him in 2014 after the allegations of his theft came to light.
Call a Los Angeles Securities Fraud Attorney Today
If you had an account with Alec Rivera at Merrill Lynch, or you have suffered losses due to the fraudulent actions of your broker or brokerage firm, you may have certain legal rights that require your immediate attention.
Contact an experienced Los Angeles securities fraud attorney today for a consultation to discuss your rights and options.